Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2: (18 marks) George Ltd manufactures and directly sells three products: B1, B2 and B3. Its budgetary information is as follows: Unit production and
Question 2: (18 marks) George Ltd manufactures and directly sells three products: B1, B2 and B3. Its budgetary information is as follows: Unit production and sales Batch size (units per batch) Number of direct online customers Selling price per unit Direct material per unit Direct labour hours per unit Hourly rate for labour ($/hour) Variable selling cost per unit Variable overhead per unit Inspection costs per batch Customer-level costs (per customer) B1 5000 500 SO $160 $78 0.2 $20 SIO SIS S180 SINO B2 3600 400 30 S210 $72 0.3 $20 S6 S13 SI SO S180 B3 2500 250 20 S280 SISO 0.4 $20 SII S20 $100 $180 For the coming year, the company's: Fixed manufacturing facility level cost is budgeted at $400,000 Fixed selling and administrative costs are budgeted at $320,000 There is no beginning or ending inventory maintained. Tax rate is 33% Required: a. Calculate George Ltds budgeted net profit for the coming year. (12 marks) Click or tap here to enter text. b. Assuming the sales mix remains as budgeted, determine how many units of each product George Ltd must sell in order to earn an after-tax profit of $320,000. (6 marks) Click or tap here to enter text
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started